Category: Trade

The statement made by Anne-Marie Trevelyan, the then Secretary of State for International Trade, in the House of Commons on 5 September 2022.

On 24 August, the Government launched negotiations with Ukraine towards a bilateral digital trade agreement, the proposed UK-Ukraine digital trade agreement.

The UK is standing shoulder to shoulder with Ukraine in the face of unjustified aggression from Putin, and I remain committed to ensuring that trade policy plays its part in supporting Ukraine now and throughout its economic reconstruction. In addition to the immediate actions we have already taken to liberalise tariffs and starve Putin’s war machine of funds, we need to put in place longer-term measures to support Ukraine and play our part in securing its future as a prosperous, stable and democratic partner in Europe.

The UK is increasingly recognised as a global leader in digital trade, with a network of international agreements that drive productivity, jobs and growth. In 2021, under its G7 presidency, the UK brokered agreement on the ground-breaking G7 digital trade principles, while earlier this year the UK-Singapore digital economy agreement—the world’s most innovative trade agreement—entered into force.

As a result, in my discussions with our Ukrainian partners, we have agreed that we should seek to negotiate a digital trade agreement to play an important role in supporting Ukraine’s reconstruction objectives. Ukraine has strong digital ambitions, and it has identified greater digitalisation of the economy as one of its areas of focus.

Ukraine sees digital trade as part of its vision for the future, and the UK is ideally placed to help Ukraine benefit from the opportunities this presents.

In addition to furthering our vital support for Ukraine, this agreement will also be good for British businesses. The current UK-Ukraine free trade agreement contains limited digital and e-commerce provisions. Expanding these commitments will remove barriers to digital trade and enable UK exporters to service Ukrainian markets more easily.

As digital trade is now the foundation of modern global trade, securing this agreement will send a strong signal of the United Kingdom’s support for our Ukrainian allies in response to the ongoing conflict, and further cement our position as a forward-thinking trading partner in the modern global economy.

I will continue to keep the House updated as negotiations develop.

The statement made by Anne-Marie Trevelyan, the Secretary of State for International Trade, in the House of Commons on 20 July 2022.

On Wednesday 20 July 2022, the Department for International Trade launched negotiations for a new, upgraded free trade agreement with Israel.

In line with our commitments to scrutiny and transparency, the Department for International Trade has published, and placed in the Libraries of both Houses, more information on these negotiations. This includes:

The United Kingdom’s strategic case for a UK-Israel free trade agreement (FTA)

Our objectives for the negotiations

A summary of the United Kingdom’s public consultation on trade with Israel

A scoping assessment, providing a preliminary economic assessment of the impact of the agreement.

The United Kingdom’s negotiating objectives for the upgraded agreement, published today, were informed by our call for input, which requested views from consumers, businesses, and other interested stakeholders across the United Kingdom on their priorities for enhancing our existing trading relationship with Israel.

These negotiations follow our signing of the UK-Israel trade and partnership agreement on 18 February 2019.

A new and enhanced trade agreement with Israel is a key part of the United Kingdom’s strategy to secure advanced modern agreements with new international partners, and upgrade existing continuity agreements in order to better suit the UK economy.

Israel is an important trading partner for the United Kingdom, with trade worth £5 billion in 2021 despite the disruptions of the coronavirus pandemic to global trade. As two of the most innovative and dynamic economies in the world—both in the top 15 of the global innovation index—we know that the opportunities of the future will come from sectors in which we both excel, such as technology, research and development, digital and data.

Our existing agreement, which forms the basis of our current trading relationship, is outdated and not designed for a digital age. Originally signed in 1995 between Israel and the EU, it was developed before smartphones, artificial intelligence and the internet transformed our economies. While it allows tariff-free trade on 99% of UK goods exports by value, it currently contains scant provision for the United Kingdom’s thriving services sector. We intend to change this by putting services at the heart of a modern new agreement, which better benefits the UK economy. Upgrading our trade deal with Israel will help unlock a stronger, more advanced partnership. A new agreement could make it cheaper and easier for innovative UK services and tech companies to trade with Israel, benefiting sectors including finance, accountancy and legal. The new deal will play to our strengths, reflecting the realities of trading in the 21st century and allowing us to take advantage of future innovations.

Around 6,600 businesses from all four corners of the United Kingdom exported their goods to Israel in 2020. Of these firms, 5,600 were small and medium-sized enterprises (SMEs). The United Kingdom’s SMEs could be amongst the biggest winners from a new agreement with Israel, as we seek to make it easier to do business and focus on trade barriers that may have deterred them from previously entering this exciting marketplace.

The Government are determined that any agreement must work for consumers, producers, investors, and businesses alike. We remain committed to upholding our high environmental, labour, public health, food safety and animal welfare standards, alongside protecting the national health service.

The Government will continue to update and engage with key stakeholders, including Parliament and the devolved Administrations, throughout our negotiations with Israel.

The statement made by Anne-Marie Trevelyan, the Secretary of State for International Trade, in the House of Commons on 19 July 2022.

The second round of UK-Canada Free Trade Agreement negotiations began on 20 June and concluded on 24 June. Owing to concurrent negotiations with India and CPTPP, a limited number of sessions will be held outside of this week, including goods market access, scheduled for mid-July.

The negotiations were hosted by Canada and conducted in a hybrid fashion; 40 UK officials travelled to Ottawa for in-person discussions and a further 145 attended virtually from the United Kingdom. Technical discussions were held across 34 policy areas over 52 separate sessions.

During this round, the UK set out its policy positions, having tabled text for the majority of chapters. Discussions were constructive, reflecting a determination from both sides to make progress, although we are only in the early stages of negotiations.

The negotiations continue to reflect our shared ambition to secure a progressive deal which looks to build on the UK-Canada Trade Continuity Agreement, and strengthens our existing trading relationship, already worth over £21 billion in 2021.

The third round of negotiations is due to take place in September 2022.

We remain clear that any deal the Government strike must be in the best interests of the British people and the economy.

The Government will keep Parliament updated as these negotiations progress.

The statement made by Anne-Marie Trevelyan, the Secretary of State for International Trade, in the House of Commons on 29 June 2022.

With permission, Mr Speaker, I will make a statement on the Government’s final decision regarding the UK’s steel safeguards.

A strategic steel industry is of the utmost importance to the UK, especially given the uncertain geopolitical and economic waters that we are all charting. Trade remedies are one of the ways that Government can protect their businesses. Trade remedies tackle issues of dumping, unfair Government subsidies or, as in the case of safeguards, give businesses time to adjust to unforeseen increases in imports.

When we left the EU, the UK rolled over the relevant trade remedies that were already in place. That included safeguards on 19 different categories of steel imported into the UK from the rest of the world. Last year, the Trade Remedies Authority reviewed those measures and recommended keeping the safeguard on 10 categories of steel and removing it on nine. On 30 June 2021, the Government announced that they would extend the safeguard, as recommended by the TRA, on 10 product categories of steel for three years and remove it on four of the remaining nine, but that they would extend the safeguard for one year on five categories of steel to allow further time to review them.

In March this year, we passed legislation to allow the Government to take responsibility for the conduct of transitional reviews and reconsiderations of any transitional review. In March, I called in the reconsideration of the steel safeguards with the new authority. The TRA has since completed additional analysis for my consideration. I have considered its report and findings and have concluded that there would be serious injury, or the threat of serious injury, to UK steel producers if the safeguards on the five additional categories of steel were to be removed at this time.

Given the broader national interest and significance of this strategic UK industry and the global disruptions to energy markets and supply chains that the UK faces, we have concluded that it is in the UK’s economic interest to maintain these safeguards to reduce the risk of material harm if they are not maintained. I am therefore extending the measure on the five steel categories for a further two years until 30 June 2024, alongside the other 10 categories. That means that the safeguard will remain in place on all 15 categories, updated from 1 July to reflect recent trade flows.

The Government wish to make it clear to Parliament that the decision to extend the safeguards on the five product categories departs from our international legal obligations under the relevant World Trade Organisation agreement as it relates to the five product categories. However, from time to time, issues may arise in which the national interest requires action to be taken that may be in tension with normal rules or procedures.

The Government have therefore actively engaged with interested parties—including those outside the UK—on the future of the UK safeguard, and have listened to the concerns raised, including the needs of the many thousands of people employed throughout our downstream steel industry, who play a vital role in the economic life of the UK. Throughout the investigation, downstream users of steel have raised concerns about difficulties in sourcing some steel products in the UK, particularly those classified under category 12. I have listened to those concerns and am acting to protect this vital part of the economy by increasing the tariff rate quota on category 12A to ensure that it better reflects trade flows.

The Government have also decided to suspend the safeguard measure for steel goods coming from Ukraine for the next two years. The Government are clear that we will do everything in our power to support Ukraine’s brave fight against Russia’s unprovoked and illegal invasion and to ensure long-term security, prosperity and the maintenance of the world order from which we all benefit. The Government have already removed all tariffs under the UK-Ukraine free trade agreement to zero to support Ukraine’s economy. This decision means that Ukrainian steel will not be subject to the additional safeguard quotas and duty.

These are unusual times. The aftershocks of the gravest pandemic have combined with the biggest war in Europe since 1945, the spike in energy costs is creating huge stresses on manufacturing, global steel markets are facing persistent overcapacity, and the TRA’s findings provide clear evidence of serious injury or the threat of serious injury to our UK producers. The Government have a duty to use our democratic mandate to the greatest possible effect to protect the interests of the British people and provide leadership in these challenging times. On balance, we have therefore decided that it is in the vital public interest that the Government act to protect the steel sector, which is why we have taken these steps.

We believe that our approach is in the public interest. The decision has been taken collectively and with reference to the ministerial code, noting the conflict that I have outlined. It has been a finely balanced decision. Steel is a vital industry for the UK and is in constant use in our everyday lives, but the global position for steel production is challenging. The use of unfair subsidies contributes to global overcapacity, putting domestic industries at risk around the world, so the measures that I am announcing today will further support our steel industry and those who work in it. They come on the back of the Government’s having secured an expansive removal of section 232 tariffs on imports of UK steel and aluminium products into the USA, which came into effect earlier this month. The tariff-free volumes that we have secured mean that UK steel and aluminium exports to the US can return to levels not seen since before 2018.

It is important to remember that safeguards are a temporary, short-term measure. We will continue to work with international partners, alongside other Departments, to support our domestic steel sector for the long term. I hope that the House will support the Government’s stance in defending our strategically important steel sector. I commend this statement to the House.

The statement made by Anne-Marie Trevelyan, the Secretary of State for International Trade, in the House of Commons on 22 June 2022.

On Friday 17 June, we hosted a UK-Ukraine infrastructure summit in London. The summit, with Prime Minister of Ukraine, Denys Shmyhal, and Minister of Infrastructure of Ukraine, Olexandr Kubrakov, brought together Ukrainian Ministers and business leaders for talks on rebuilding Ukraine after the conflict and ensuring its long-term prosperity.

Discussions identified where UK companies have world-class skills that can support reconstruction efforts—such as digital infrastructure, water and sanitation, energy, homes, and transport.

During the summit, we signed a memorandum of understanding with Ukraine which set out elements of UK support for reconstruction efforts and established a joint taskforce, which will help build partnerships between UK and Ukrainian businesses to assist the reconstruction of infrastructure in and around Kyiv.

The taskforce will support greater collaboration between the UK’s world-class infrastructure, energy, and transport companies and Ukrainian public organisations and private sector businesses. This will help plan for the future as well as repairing damaged and destroyed infrastructure, including transport systems, homes, and bridges more efficiently, safely and sustainably.

The UK has already committed to provide a combined economic, humanitarian, and military support package to Ukraine worth over $3 billion. UK Export Finance has also pledged to retain its £3.5 billion-worth of financial support for trade to Ukraine—helping the country to fund its reconstruction projects and allowing UK exporters and Ukrainian buyers to access the finance they need to trade commercially.

The UK has introduced one of the largest and most severe packages of economic sanctions against Russia. Measures cover over £4 billion-worth of products that are traded with Russia, 1,000 individuals and 100 entities in key sectors such as defence, crippling Putin’s war machine.

We also announced changes to trade remedy measures relating to the conflict. This includes reallocating ringfenced market access for steel imports from Russia and Belarus to other countries, including Ukraine.

The UK will do everything in its power to support Ukraine’s brave fight against Russia’s unprovoked invasion and to ensure its long-term security and prosperity.

The statement made by Anne-Marie Trevelyan, the Secretary of State for International Trade, in the House of Commons on 22 June 2022.

Today I am formally launching free trade negotiations between the UK and the Gulf Co-operation Council (GCC) from Riyadh, Saudi Arabia, where I am meeting the GCC Secretary General, His Excellency Dr Nayef Falah M. Al-Hajraf, and Ministers from the six GCC member states.

In line with our commitments to scrutiny and transparency, the Department for International Trade has published, and placed in the House Libraries, more information on these negotiations. This includes:

The UK’s strategic case for a UK-GCC Free Trade Agreement (FTA).

Our objectives for the negotiations.

A summary of the UK’s public consultation on trade with the GCC.

A scoping assessment, providing a preliminary economic assessment of the impact of the agreement.

The Gulf Co-operation Council represents Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE). These six countries are home to 54 million people and have a collective economy of £1.2 trillion.[1]

The GCC is equivalent to the UK’s seventh largest export market, and total trade was worth £33.1 billion in 2021. An FTA would be a substantial opportunity for both our economies and a significant moment in the UK-GCC relationship. It will grow the economy, support jobs and the levelling up agenda.

Government analysis shows that an FTA is expected to increase trade by at least 16%, add at least £1.6 billion a year to the UK economy and contribute an additional £600 million or more to annual UK workers’ wages.

All regions and nations of the UK are set to benefit from a trade deal with the GCC, supporting the Government’s levelling up agenda. Industries outside of London are expected to benefit most, with the east midlands, west midlands, north-east and Yorkshire and the Humber in line for the greatest proportional gains.[2]

The GCC countries are undergoing a period of economic change and they all have ambitious vision strategies, which highlight areas for future economic growth and development. Demand for international products and services is expected to grow rapidly to £800 billion by 2035, a 35% increase, which will create significant opportunities for UK firms. Now is the time to strike an ambitious and modern trade deal.

A strong trading relationship will allow the UK to play to our strengths as a manufacturing powerhouse and a world leader in technology, cyber, life sciences, creative industries, education, Al, financial services and renewable energy.

UK businesses in these industries have a role to play in supporting the GCC countries as they diversify their economies to move away from a reliance on fossil fuels and towards knowledge-based and green economies. The UAE, for example, has set a target of generating 50% of its electricity from renewable sources by 2050.

UK goods exporters could benefit from reduced or zero tariffs, making their products more competitive in the GCC market. For example, UK clothing, ceramics and wind turbine parts currently face tariffs of up to 15%. British farmers and food and drink producers can also benefit from new export opportunities for products, including cereals—up to 25% tariff—and chocolate—up to 15% tariff—since the GCC countries import virtually all of their food.[3]

The UK and GCC countries share an important investment partnership, with at least £30 billion already invested in each other’s economies, and an FTA will help to strengthen this even further. This will support jobs throughout the UK and the GCC countries.

The UK will continue to uphold our high environmental, labour, food safety and animal welfare standards in our trade agreement with the GCC.

The first round of FTA negotiations will take place over the summer. As negotiations progress, I will ensure that parliamentarians, UK citizens and businesses are provided with regular updates.

[1] IMF estimate for 2021, World Economic Outlook April 2022.

[2] Based on the percentage increases in the scoping assessment.

[3] Tariffs in these sectors are mostly 5% across the GCC where in some cases individual countries charge higher tariffs on specific products. Note that tariffs on chocolate does not include products containing alcohol.